KCSE BUSINESS STUDIES TOPICAL QUESTIONS AND ANSWERS

ExpIan five measures that may be taken to increase the volume of exports

2/6/2020

Measures that can be taken to increase the volume of exports

Export compensation scheme where exporters are allowed to claim a certain amoint /percentage of the value of the exports to enable exporters sell at a lower price
Diversifying foreign markets to expand the market for exports /this increases the selling opportunity for local products in the countries
Devaluation of a country's currency which makes its exports cheaper /more attractive to foreign buyers
Encourage (foreign)investments in the country that is geared towards production of goods for exports
Lobbying for removal of trade restrictions /barriers increased by trading partners on the country's exports
Reduction of bureaucracy In acquisition of exports licences this makes it attractive to engage in foreign trade
Use of commercial attaches /government agencies to promote country's exports abroad

31/5/2020

Functions of the Department of external trade in the ministry of Industry, Trade and Co-operatives include:

Develop bilateral and multilateral trade agreements to accord Preferential treatment to Kenyan exports.
Educating Kenyan exporters on trade regulations and practices in other countries.
Intervene on behalf of Kenyan traders in between Kenyan traders and foreign clients.
Arrange for trade fairs, shows and exhibition for Kenyan goods in foreign countries
Expand and diversity foreign markets for Kenyan goods
Inform Kenyan producers available selling opportunities in other countries.

30/5/2020

Circumstances under which each of the terms of trade would be
applied in foreign trade are:

Franco: when the price quoted covers all expenses till goods reach the premises of the buyer
Ex-works: when the price quoted only covers the fraction and while they are within the manufacturer’s warehouse.
In bond: when the prices quoted covers all expenses until goods are delivered in a bonded warehouse in the country of destination.
Free alongside ship (F.A): Where the price quoted cover all expenses to the point where the goods are next to the ship.